LOP Reversal is the process of reversing (or reimbursing) LOP (that is, “Loss of Pay”) that an employee suffered because of some unforeseen reason. For example, an employee came into work on a certain day, but the employee tracking system did not track the employee due to some technical issue. In that case, the employee may suffer LOP for being absent on the said day. But the employee came to work, thereby making LOP an unfair deduction. Employers understanding this will then reverse the LOP and pay the amount to the employee.
There are many reasons why an employee can suffer LOP:
However, sometimes LOP happens due to the negligence of the employer and then they must reverse the LOP.
There are times when an employee comes in and they are still marked absent. In that case, employers reverse the LOP for days when the salary was deducted.
Sometimes employees suffer LOP due to technical issues, irregular approval cycle and other issues. Employers can do a basic reversal in salary after the issue is resolved and recompense the employee.
LOP in pay slip is the amount deducted from an employee’s salary due to their absence from work.
The easiest way to calculate LOP is to determine the salary of the day of an employee and multiply it with the number of unapproved leaves taken. For example, an employee’s salary is 50,000/ month and she takes 2 days off without approval or she is out of leaves. Then her LOP = Per day salary X Number of leaves. In this case, 1923 X 2 = 3846.
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